Modulation of short waves by surface currents subjected to wind input and breaking dissipation is investigated. The dissipation is expressed as a power law function of the action density. The solution is presented in the form of an integral equation and the method of characteristics is applied to obtain numerical results. The numerical solution compares favorably with the relaxation theory when the surface current is weak, and it can be applied to a strong current condition, where the linear assumption used in the derivation of the relaxation theory is no longer valid. The modulation response to various wind and wave parameters, such as short-wave wavelength, surface wind stress, long-wave frequency and steepness, different dissipation functions, and interaction length or duration between long and and short waves, are discussed. ¿American Geophysical Union 1990